Lack of quorum derails Smartech plan to take over data centre

A meeting of Smartech Digital Manufacturing Holdings shareholders to approve a controversial acquisition of an Internet data centre has been called off due to insufficient attendance one day before the deal deadline.

Industrial mould-maker Smartech yesterday said it requested the suspension of trading of its shares, because a 'quorum of members was not present for the extraordinary general meeting held today'. A quorum is the minimum number of decision-makers required at a meeting to make a decision lawful.

The meeting was convened to vote on the acquisition of the entire equity of an Internet connectivity and server storage facilities operation from telecommunications concern Asia Tele-Net & Technology.

It was held one day ahead of the deal's deadline, which is midday today. One condition of the deal was that it had to be agreed to by Smartech shareholders before it lapses.

The start-up operation lost HK$12.8 million between its establishment in mid-March last year and December 31.

By the end of last year its liabilities exceeded assets by the same amount.

Smartech was supposed to pay HK$140 million - deemed a fair amount by valuer American Hongkong - by issuing 700 million new shares at 20 HK cents each.